Skip to content

Menu

LexBlog, Inc. logo
NetworkSub-MenuBrowse by SubjectBrowse by PublisherJoin the NetworkGet StartedSubscribeSupportContact
Search
Close

Efforts Underway to Ban All Pre-Dispute Arbitration Agreements Covering Sexual Harassment and Discrimination Claims

By Joel Clymer on June 28, 2022
Email this postTweet this postLike this postShare this post on LinkedIn

Signed into law by President Joe Biden in March 2022, the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 amended the Federal Arbitration Act (FAA) to effectively ban the pre-dispute arbitration of sexual harassment and sexual assault claims. Although this important legislative update has often been framed within the employment context, it is important for all employers, including those in the healthcare industry, to note that the sweeping ban on sexual assault and sexual harassment arbitration agreements does not appear to be limited to claims arising solely within the workplace.

The new law’s broad definition of the term “pre-dispute arbitration agreement” as “any agreement to arbitrate a dispute that had not yet arisen at the time of the making of the agreement” does not explicitly exclude agreements outside of employment agreements. Additionally, the law’s definitions of the terms “sexual assault dispute” and “sexual harassment dispute” do not explicitly limit conceivable claims to the workplace.

Importantly, many states have civil statutory frameworks outlawing sexual harassment/assault that provide for a cause of action for sexual harassment/sexual assault outside of the employment context (such as the public accommodation provisions in the New Jersey Law Against Discrimination – NJLAD). Employers should therefore closely consider how the new law might also affect arbitration agreements with customers, clients, and/or patients that limit premises liability.  Insurance rates could also be impacted, as the cost of defending these claims in state court are often much higher than through arbitration.

Since the passage of the first amendment to the FAA, the House has passed a second bill amending the FAA that would extend the ban on pre-dispute arbitration agreements to future employment, consumer, antitrust, and civil rights claims. Notably, this second proposed amendment defines “employment” and “civil rights” claims broadly enough to include the full panoply of federal and state employment discrimination/civil rights claims, and explicitly includes claims arising from alleged discrimination in – among other places – “public accommodations and facilities” and “healthcare.”

Although the first FAA amendment passed mostly along party lines with limited bipartisan support, the pending second amendment is expected to garner far more contention and debate in the Senate along the usual party lines. As of now, it appears that the second amendment may narrowly pass in the Senate if Democrats can maintain their partisan coalition that led to passage of the first amendment. However, this outcome assumes that the vote takes place before the mid-term elections in November 2022, which remains uncertain. Regardless, the recent changes to the FAA and the potential future changes should be closely reviewed by healthcare providers.

Photo of Joel Clymer Joel Clymer

Partner, Employment Law and Litigation

Joel represents clients in defense-side employment litigation and workplace counseling, helping employers navigate complex legal challenges while fostering compliance and mitigating risk. His litigation experience encompasses the investigation, evaluation and litigation of discrimination, harassment, and retaliation claims under…

Partner, Employment Law and Litigation

Joel represents clients in defense-side employment litigation and workplace counseling, helping employers navigate complex legal challenges while fostering compliance and mitigating risk. His litigation experience encompasses the investigation, evaluation and litigation of discrimination, harassment, and retaliation claims under Title VII of the Civil Rights Act, the New Jersey Law Against Discrimination (NJLAD), the Americans with Disabilities Act (ADA), the Age Discrimination in Employment Act (ADEA), the Family & Medical Leave Act (FMLA), and other employment law statutes. He provides retaliation and whistleblower defense under the New Jersey Conscientious Employee Protection Act (CEPA) and related laws.

Joel defends employers against wrongful termination and breach of contract claims, and provides support in matters involving restrictive covenants and non-compete agreements. His clients include public universities and large educational institutions, government agencies, healthcare facilities and providers, and corporate entities ranging from small businesses to Fortune 500 companies. His practice spans pre-litigation status through trial in state and federal courts, including the defense of clients in appellate court proceedings.

In the area of employment counseling, Joel proactively counsels clients on employment-related best practices, assisting in the development and implementation of protective workplace protocols and providing preventative training for management and employees to mitigate risks before they escalate into legal disputes and costly litigation. He provides guidance on a variety of employment issues in the workplace, including accommodation requests, employee benefits, leaves of absence, workplace investigations, workplace procedures, employee handbooks, severance agreements, policy development, and compliance. He advises clients on legal issues arising under the Occupational Safety & Health Act (OSHA) and the federal Fair Labor Standards Act (FLSA).

Joel’s experience with employment-related workplace investigations is broad-based. He conducts prelitigation investigations to determine the likelihood of successful litigation, providing guidance to clients to avoid litigation when possible. In matters where employment litigation is already underway, he conducts workplace investigations to assess the validity of employment discrimination, harassment, retaliation, and whistleblower complaints during all stages of the litigation process, from initial filing through trial.

Joel also represents clients in commercial matters and has represented businesses in the litigation of shareholder/member disputes, breach of contract actions, and other business tort matters in state and federal courts.

Results may vary depending on your particular facts and legal circumstances.

Contact information:

jclymer@greenbaumlaw.com | 732.476.2514 | vCard  | LinkedIn

For more information visit the Greenbaum, Rowe, Smith & Davis LLP website.

Email
Show more Show less
  • Posted in:
    Employment & Labor
  • Blog:
    Healthcare Perspectives
  • Organization:
    Greenbaum, Rowe, Smith & Davis LLP
  • Article: View Original Source

Call us at 1-800-913-0988 or email sales@lexblog.com.

Facebook LinkedIn Twitter RSS
The Library at LexBlog
  • About LexBlog
  • The Field We Built
  • Library at LexBlog
  • Our Beliefs
  • Our Team
  • Contact LexBlog
  • Disclaimer
  • Editorial Policy
  • Terms of Service
  • Get Started
  • Publishing Solutions
  • Compass
  • Submit a Request
  • Support Center
  • System Status
Copyright © 2026, LexBlog, Inc. All Rights Reserved.
Law blog design & platform by LexBlog LexBlog Logo